State should tighten its budget belt, too

Published: Wednesday, October 29, 2008

THE MAJORITY OF Texans most likely agree Gov. Rick Perry is on the right track in reiterating the need for continued fiscal restraint, budget transparency and maintaining low taxes in the upcoming Legislative session.

He's starting by instructing state agencies to tighten their financial belts like the rest of us are having to do in these uncertain times.

"Texas businesses and families are ... cutting spending and exercising greater discipline," said Gov. Perry, in a recent speech to Houston business leaders. "They are taking a closer look at the difference between want and need. In times like this, state government should be no different."

Among Gov. Perry's suggested trims: cutting back on taxpayer-funded travel. He also asked the agencies to reconsider their budget requests for the next legislative session.

Each of these matters warrants priority status and shouldn't get pushed to the back burner as has happened during previous sessions to the detriment of all concerned.

Texas is not immune from the financial meltdown shaking the national economy. Texas is estimated to go into the next budget period with an $11 billion surplus, but that drops to $2 billion when already-spoken-for spending is deducted.

Almost $6 billion is for the state's Rainy Day Fund and can't be touched without a super-majority approval from each chamber of the Legislature. Another $3 billion is constitutionally dedicated to pay for property tax cuts approved last year. That money can't be touched either.

"Here's the bottom line," Gov. Perry told a meeting of the Greater Houston Partnership, the equivalent of a chamber of commerce. "Given the current economic turndown and the expectation that it will ultimately impact Texas, all state agencies need to dial back their spending."

The state has years of empirical evidence to show that keeping taxes low not only creates prosperity, jobs and investment, but it strengthens our state for the tough times.

"Every dollar the government takes means less money for employers and families," as Gov. Perry rightly pointed out.